Income statement that organizes cost by behavior. It shows the relationship of variable costs and fixed costs, regardless of the functions a given cost item is associated with.Acontribution income statement highlights the concept of contribution margin (cm). This format provides data that are useful for internal management. An illustrative format of the contribution margin income statement follows:

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Dictionary of Accounting Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.

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